Q1 For what purposes can you avail Loan Against Property?
You can avail Hero FinCorp’s Loan Against Property (applicable for both, Residential & Commercial Properties) for business purposes and activities which are not speculative or non-prohibitive.
Q2 How is my loan amount eligibility decided?
We decide your loan amount based on your repayment capacity. Further, the repayment capacity is considered on the basis of income, age, number of dependents, qualifications, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. In addition to considering these factors, the maximum amount shall not exceed 85 per cent of the cost of property.
Q3 Who can be co-applicant to the loan?
You may include your spouse as a co-applicant for the Loan. His / her addition as a co-applicant can enhance the loan amount. Please note : all co-owners of the property should necessarily be the co-applicant.
Q4 How is the loan repaid?
The repayment of loan is done in Equated Monthly Installments (EMIs). This comprises principal and interest. Repayment by EMI commences from the next month in which you take full disbursement.
Q5 What is Pre-EMI interest?
Post final disbursement, you have to pay interest on the portion of the loan which is disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month, starting from the date of each disbursement up to the date of commencement of EMI.
Q6 What security/collateral will I have to provide?
The security/collateral for the loan will be the first mortgage of the property. Collateral security such as assignment of insurance policy or any such other assignable financial instruments would suffice the need,
The title to the property needs to be clear, marketable and free from encumbrance. Most importantly there should not be any existing mortgage, loan or litigation on the property.
To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.
Q7 Can I repay the loan ahead of schedule?
Yes, you can as per the terms mentioned in your loan agreement.
Q8 Does the property require insurance?
Yes, the property has to be duly and properly insured for fire and other appropriate hazards, as required by Hero FinCorp.
Q9 Are Hero FinCorp policies subject to change?
Yes, these policies periodically reviewed.
Q10. How can I check my eligibility and loan amount?
The following factors are considered to determine eligibility and loan amount
- Valuation of the Property
- Existing obligations
- Stability/continuity of employment/business
Q11. If a property is jointly owned by an individual and his/her relatives, can he/she take a loan against this property?
It is necessary for all the co-owners of the considered property to be in as co-applicants to the loan.
Q12. What is the tenure of the loan?
Repayment of loan can be done over a maximum tenure of 15 years. Beyond the age of retirement or on reaching 60 years of the age, the repayment will not be ordinarily extended. However, Hero FinCorp will be endeavoring to determine the repayment period to suit your convenience.
Q13. What are the end uses of the loan against property which can be sanctioned by Hero FinCorp?
- Business needs
- Mortgage buyout/Balance Transfer of existing loan
- Consolidation of debt
Q14. How long does it take to process a Loan Against Property application?
The processing of the loan against property application usually takes 7 to 10 working days, post submission of all required documents.
Q15. Is it necessary to insure the property?
Yes, you need to make sure that the property is absolutely insured for fire and other hazards, as required by Hero FinCorp, during the tenor of the loan you would be required to produce evidence to us each year or a proof as asked for.
Q16. How is the Equated Monthly Installment (EMI) calculated?
Based on the loan amount, the repaying period and the interest rate on the borrowing amount the EMI is calculated. The EMI is subjected to change when interest rate changes or a part-payment of the Loan is made. Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.
Q17. What are my different options for making my EMI payments?
You may repay your LAP in any of the following four ways:
Post-Dated Cheques (PDCs), Electronic Clearing Service (ECS), National Automated Clearing House (NACH) & Online Payment.
Q18. How can I make a request to foreclose my Loan Against Property account?
Kindly submit a written request to your nearest Retail Loan Service Centre to close your account. Our customer service desk will provide you with the necessary assistance.
Q19. How do I apply for a Loan Against Property (LAP)?
You can apply for a loan in the following ways:
- Call our Customer Care numbers provided on the website
- Visit your nearest branch
- Our existing liability customers may also get in touch with their Relationship Managers/ Personal Bankers to know more and apply for LAP.
Q20. What Property can be considered as collateral for LAP?
Properties which are self-occupied Residential or Commercial for example shops and offices can be considered as collateral.
Q21. What is the maximum loan I can get against my Property?
You can get a Loan Against Property up to a maximum of 75%* of the market value of your property.**conditions apply
Q22. Is there any minimum Credit Score requirement?
There is no specific credit score requirement as per Hero FinCorp Limited policy. However, it is under the discretion of Hero FinCorp to accept or reject any loan application basis any irregularity noticed in the rating.